More from Taxpayers, But State Corporate Welfare Taking More Too

Income tax collections outpacing most recent projections

Michigan residents are making more money, meaning more money for state government. But its financial health is still enduring the effects of corporate welfare deals cut during the administration of former Gov. Jennifer Granholm.

The state is projecting it will take in $9.2 billion in net income tax by the end of the 2015-16 fiscal year, which would be a net 2.5 percent increase from the previous year. But the state also projects that it will have to pay out $1 billion in corporate welfare in the form of Michigan Business Tax credits by the end of the year. Overall, the state of Michigan’s revenues are projected to increase 2 percent to $22.1 billion in 2015-16.

The Michigan Economic Development Corporation doesn’t release the names of companies that received the money from the tax credits, despite a state law mandating that disclosure. State legislators eliminated the business tax in 2011 and replaced it with a corporate income tax and a separate financial institutions tax.

Stay Engaged

Receive our weekly emails!

But many corporations are still collecting on their deals made under the now-defunct tax.

“The costs of deals made years ago is hitting the state budget hard,” said James Hohman, the assistant director of fiscal policy at the Mackinac Center for Public Policy. “Residents ought to be outraged that they have to foot this bill while not being told exactly who is getting them and how much they are receiving.”

Related Articles:

Tilt from Tax Cutting to Corporate Welfare Renews Failed Approach to Economic Growth

Cut Corporate Welfare to Help Balance State Budget

Return of the Mega Subsidy

Michigan Crushes Korea in Corporate Welfare Handouts

Why did the Governor Flip Flop on Corporate Welfare?

Stay Engaged

Simply enter your email below to receive our weekly email:


There have been 17 exonerations in Michigan involving misapplied forensic science. Several groups from different sides of the political spectrum are calling for improvements to forensic science and for better transparency and quality control in crime labs.

Related Sites